A court in Paris has thrown out a shareholders revolt against the finalisation of Mittal steel’s merger with Arcelor. Mittal meets with Arcelor tomorrow to seal the deal with shareholders, which now looks positive after a Dutch court also ruled against Dutch shareholders unhappy with the terms.
Mittal paid 26 billion euros for Arcelor last year after a bitter takeover battle. 94 percent of shareholders have approved the deal. Some had questioned the financial logic of the takeover when Mittal produced some disappointing figures for performance last year. For the first half of 2007 the Indian steel giant actually saw sales fall, but turnover leapt.
Profits jumped by 42 percent, and the company says these record figures have been helped by a smooth integration of Arcelor’s activities into the Mittal group. Mittal says strong growth is expected from a new iron-ore mine in Senegal, and two French pipes and tubes firms that supply the auto industry.